Ziehl-Abegg is relocating and expanding production by investing $43 million in the construction of new manufacturing facilities.
The new building will almost double the EC production area to nearly 8,000 square metres.
Announcing details of the new building, the company's CEO, Peter Fenkl, said the move is being driven by increasing demand for energy saving fans and motors.
“We are equipping ourselves for the future,” he said.
The new building will be docked onto an existing building utilising existing loading ramps.
Fenkl said building work will commence during the 2016 northern summer and the relocation of about 140 jobs will take place mid-2017.
“Relocating to a new place of work isn't easy for those affected which is why the decision was not taken lightly,” Fenkl said.
Ziehl-Abegg has been producing fans in the Hohenlohe Business Park since 2003. In 2008 this facility, which is used for the manufacture of centrifugal fans, was expanded to cover an area of around 19,000 square metres.
The entire Ziehl-Abegg site in the Business Park extends to 230,000 square metres.
The most recent building, which has been developing and producing elevator motors since 2014, covers another 12,000 square metres and also houses the Ziehl-Abegg Automotive Division and gearless, where the ZAwheel in wheel hub drive for electric city buses is produced.
Staff numbers at the site will increase from 480 to more than 620 over the next 12 months.
“It isn't possible to give a realistic estimate of how many additional jobs will be created in what period of time at this site,” Fenkl added.